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Friday, November 17, 2017

IBO Best Practices

Some of us have been on the receiving end of questions about whether our Business is a pyramid. The answer is an unequivocal NO – pyramid businesses are illegal. Amway is committed to maintaining the highest standards in business. This month’s Best Practices message is intended to help clear up any misconceptions related to Amway and pyramid businesses.

There are certain characteristics that mark illegal pyramids:

  • Payment of head-hunting fees, i.e. money is earned just for recruiting others and not from sales volume;
  • Minimum purchase requirements to participate; and/or
  • No sales of legitimate products or services to those outside the organization

The Amway Independent Business Opportunity is distinctly different from an illegal pyramid. Here are a few of the most important qualities that distinguish us from a pyramid:

  • There are no head-hunting fees involved – ever. No one earns money just for registering new IBOs
  • We also have no minimum purchase requirements to register as an IBO. While there is a registration fee (common for direct-selling companies), the purchase of product is entirely optional, though it is recommended in order to learn about the products
  • And perhaps most important – no one earns money in an Amway Independent Business until product is sold

In fact, Amway standards, like the Customer Volume Requirement (CVR), are intended to encourage the sale of product. The CVR, for example, requires that IBOs who have not reached the Platinum level must generate at least 50 PV worth of sales to any number of retail customers or make at least one sale to 10 different retail customers in order to earn a Performance Bonus on downline volume.  The bottom line is that selling products is important to the success of each IBO business and the overall Amway Business.

Feel free to contact us if you have any questions.